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Grindwell Norton Ltd Stock Analysis

Mid Cap
Evaluated by 1321 users | BSE: 506076 | NSE: GRINDWELL |
Abrasives
Headquartered in Mumbai, Grindwell Norton (GNO) came into existence when a technical collaboration in 1967 between Grindwell and US based Norton Company grew into a financial collaboration in 1971. In 1990, Saint-Gobain acquired Norton Company, worldwide, and six years later, GNO became the...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Grindwell Norton Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 22.59%23.9%19.87%15.19%16.78%14.18%13.97%15.83%15.64%15.82%
Value Creation Index 0.810.910.590.220.340.130.120.270.12NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7979079459421,1101,1261,2361,4051,5671,552
Y-o-Y Gr. Rt.-13.8%4.3%-0.4%17.9%1.4%9.8%13.7%11.5%-0.9%
Adjusted EPS (Rs.) 7.759.378.827.48.918.8210.3713.3314.5215.9
Y-o-Y Gr. Rt.-20.9%-5.9%-16.1%20.4%-1%17.6%28.5%8.9%9.5%
Book Value per Share (Rs.) 36.1441.7246.7450.3855.4368.3279.6688.1297.37105.34
Adjusted Net Profit 85.810497.781.998.697.6115148161176
Net Op. Cash Flow (Rs. Cr.) 78.211110196.198.113116112481.9307
Debt to Cash Flow from Ops 00000.020.020.02000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Grindwell Norton Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.7%6.9%7.9%-0.9%
Adjusted EPS 8.3%12.3%15.3%9.5%
Book Value per Share 12.613.79.88.2
Share Price 20.7% 12% 8.7% 13.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 22.5323.8419.7915.1416.7414.1613.9215.7815.5415.55
Operating Profit Margin (%) 16.4616.8715.1813.9814.8315.0114.6316.8916.5616.24
Net Profit Margin (%) 10.7711.4410.338.78.888.679.2910.510.2611.34
Debt to Equity 0000000000
Working Capital Days 144107111113112129121122133141
Cash Conversion Cycle 52565860607354425759
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 58.32%
Institutions 20.13%
Non-Institutions 21.55%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Grindwell Norton Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Grindwell Norton Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Grindwell Norton Ltd's performance infers:

Grindwell Norton Ltd earnings have grown by 12.3%, whereas share price has appreciated 12% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Grindwell Norton Ltd share prices over the last 10 years. Here is what we found out:

Grindwell Norton Ltd share price has appreciated 19.2% annually over the past ten years.

Headquartered in Mumbai, Grindwell Norton (GNO) came into existence when a technical collaboration in 1967 between Grindwell and US based Norton Company grew into a financial collaboration in 1971. In 1990, Saint-Gobain acquired Norton Company, worldwide, and six years later, GNO became the first majority-owned subsidiary of Saint-Gobain in India. Saint-Gobain holds around 51% stake in the company.

The

Headquartered in Mumbai, Grindwell Norton (GNO) came into existence when a technical collaboration in 1967 between Grindwell and US based Norton Company grew into a financial collaboration in 1971. In 1990, Saint-Gobain acquired Norton Company, worldwide, and six years later, GNO became the first majority-owned subsidiary of Saint-Gobain in India. Saint-Gobain holds around 51% stake in the company.

The company was originally registered as a private limited company in the early forties and was later converted into a public limited company in 1950.

GNO is India’s leading manufacturer of abrasives (bonded, coated, non-woven, superabrasives and thin wheels) and silicon carbide. It also manufactures and markets high performance refractories and performance plastics products.  GNO’s Project Engineering Group (PEG), with its portfolio of diverse projects, is a proven engineering resource for Saint-Gobain companies in India and internationally.

The company has six manufacturing locations in Mumbai, Nagpur, Bangalore, Tirupati, Himachal Pradesh and Bhutan and 11 sales offices across the country. The Himachal Pradesh Abrasives site and Saint-Gobain Ceramic Materials Bhutan, a joint venture partnership with a local partner are two recent projects which have been undertaken to strengthen the group’s presence in India.

Product Range:

The company manufactures the below:

a) Abrasives - In 1941, Grindwell made the first grinding wheel in India. It has since been offering the best abrasives technology to Indian Industry. It offers six kinds of abrasives:

  • Bonded abrasives
  • Coated abrasives
  • Non-woven abrasives
  • Super abrasives
  • Construction abrasives
  • Thin wheels

b) Ceramics - Ceramics, the material of the future has a wide range of industrial applications ranging from high temperature refractories, wear parts, fused cast ceramics to filters for chemical plants and much more.

Business Divisions:

  • Performance Plastics - The performance plastics division is a recognized authority in advanced polymer technology. It produces and markets more than 800 standard and custom polymer products through three businesses: Engineered Components, Fluid Systems and Composites. Each demonstrates innovation, responsiveness to customer needs and polymer expertise.
  • Project Engineering Group -  The Project Engineering Group (PEG) is a division of Grindwell Norton. Established in the early seventies, primarily for setting up Grindwell Norton's plants and equipment in- house, PEG has come a long way and has several achievements to its credit. Over the years, it has set up large scale complex projects for Grindwell Norton and for other Saint-Gobain group companies in India and abroad.

Awards:

  • GNO had featured in Forbes Asia’s ‘Best Under a Billion’ list in October 2006. It was one of just 23 Indian companies listed among the top 200 companies, with sales of under a billion dollars, in the Asia-Pacific Region.
  • The company got ISO 9001:2000 certification in the year 2003.

Recent Development:

Saint-Gobain Ceramic Materials Bhutan, the joint venture between Grindwell Norton and Bhutan’s Singye Group for manufacturing silicon carbide, commenced commercial production during the first week of May 2009.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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